Re:THE APPLICATION OF ARCO Alaska, Inc. ) Conservation Order No. 442
for an order granting an exception to the spacing )
requirements of 20 AAC 25.055(a)(1) to ) Fiord #4 and Fiord #5
provide for the drilling of the Fiord #4 and ) Colville River Unit
Fiord #5 exploratory oil wells to an undefined )
pools in the Colville River Unit. )
February 18, 1999

IT APPEARING THAT:

1. ARCO Alaska, Inc. (AAI) by letter dated January 19, 1999, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(1). The exception would allow drilling the Fiord #4 and Fiord #5 exploratory oil wells to undefined pools within 500' of a governmental quarter section line.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on January 27, 1999 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Fiord #4 will be drilled as a directional well from a surface location of 250' from the south line (FSL), 250' from the west line (FWL) of Section 22, T13N, R5E, Umiat Meridian (UM) to a bottomhole location 565' FSL, 1030' FWL of Section 22, T13N, R5E, UM.

2. The Fiord #5 will be drilled as a directional well from a surface location of 375' from the north line (FNL), 812' from the east line (FEL) of Section 32, T13N, R5E, Umiat Meridian (UM) to a bottomhole location 205' FNL, 200' FEL of Section 32, T13N, R5E, UM.

3. Offset owners Anadarko Petroleum Corportion and Union Texas Alaska, LLC and offset landowner the State of Alaska, Department of Natural Resources, have been duly notified.

4. An exception to the well spacing provisions of 20 AAC 25.055(a)(1) is necessary to allow the drilling of these wells.

CONCLUSION:

Granting spacing exceptions to allow drilling of the Fiord #4 and Fiord #5 exploratory oil wells will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

AAI's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(1) for the purpose of drilling the Fiord #4 and Fiord #5 exploratory oil wells is approved.